FTC Probes Yahoo

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FTC Probes Yahoo

WASHINGTON –- The Federal Trade Commission is conducting an inquiry into some of Yahoo's consumer information practices to see if they comply with consumer protection laws, the company said Thursday.

Shares of Yahoo, one of the most highly trafficked sites on the Internet, closed down 7-3/4 to 169 in heavy Nasdaq trading.

The FTC has requested information from the Internet portal about its practices, the Santa Clara, California-based company said in an annual report filed with the Securities and Exchange Commission.

There was no immediate comment from a Yahoo spokeswoman.

But the company said in the SEC filing that it posts privacy policies concerning the use and disclosure of user data.

Yahoo noted that a Web community company it acquired, GeoCities, is required to comply with an FTC consent order which imposes restrictions on information collected from users.

Yahoo said in the filing that any failure to comply with its posted privacy policies, the FTC consent order and inquiry, or other privacy-related laws could result in proceedings by the FTC or others which could potentially have an adverse impact on its business.